As we make our way through Q1 of 2019, let's look back on 2018 and analyze how funding in the retail technology sector compares to previous years. The graphic below shows the total annual retail technology funding amounts over time.

As the graphic demonstrates, 2018 was a record year for retail technology funding at almost $18B. It represents a 30% increase from the previous year’s funding. In addition, retail technology funding grew at a CAGR of 43% over the past 5 years. Some of the largest funding events in 2018 include a $1.5B round for Go-Jek, a $1B round for Swiggy, and a $717M round for Huitongda.

The retail technology industry has seen $82B in total all time funding. Let's now examine the investors financing the retail technology sector and identify the most active firms.

The graphic below highlights retail technology investors based on the number of investments made in the sector. If an investor participates in two investment rounds in the same company (such as a Series A and Series B), that would qualify as two investments for this analysis.

As the graphic demonstrates, 500 Startups has made the most investments in the retail technology sector with 92 investments. Y Combinator follows with 85 investments. Examples of companies that 500 Startups has invested in include Carousell, Goldbelly, Womply, and ToutApp. The two CVCs rounding out the list include GV and Intel Capital.

Last quarter we examined retail technology funding trends and saw that its funding is shifting to later-stage events. Now we are conducting a thorough inspection on our retail tech research platform to compare funding by category. Our analysis reveals two important observations:

The Last Mile Logistics category leads the sector in Q2 funding

The Last Mile Logistics category also leads the sector in all-time funding

We’ll explain these observations with some graphics and discussions below.

The Retail Technology sector includes companies that facilitate the operational procedures of retailers. It also contains companies that make it easier to search and shop for merchandise.

What are the different components of Retail Technology? How do they make up this startup ecosystem? On our retail tech research platform, we have classified the companies into 21 categories. This blog post examines these categories and how they compare with one another.

Marketing Platforms Is the Largest Category

Let’s start off by looking at the Sector Map for the Retail Technology sector. As of March 2018, we have classified 1,746 Retail Technology startups into 21 categories. They have raised $59 billion in funding. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies in each category.

We see that Marketing Platforms is the largest category with 245 companies. This category includes companies that enable merchants to...

The following graph shows the founding year distribution in the Retail Technology sector. The graphic includes data through September 2017.

The above graph summarizes the number of Retail Technology companies founded in a certain year. 2012 ranks at the top with around 242 companies founded in that year alone. 2011 is the runner-up with 224 companies founded in that year.

We are currently tracking 1673 Retail Technology companies in 22 categories across 58 countries, with a total of $54.5 Billion in funding. Click here to learn more about the full Retail Technology market report.

The following graphs highlight recent trends in Retail Technology startup funding activity. The graphics include data through September 2017.

The above graph summarizes the total funding raised by Retail Tech startups for each year. 2015 has the most funding to date at around $10.5B.

The above graph summarizes the total amount of funding raised by Retail Tech companies founded in a certain year. Companies founded in 2008 have raised the most funding at around $7.7B.

We are currently tracking 1667 Retail Tech companies in 21 categories across 58 countries, with a total of $54.3 Billion in funding. Click here to learn more about the full Retail Technology market report.

The analyses below summarize where Retail Technology innovations are occurring. The graphic includes data through September 2017.

The above map shows the number of Retail Tech companies located in different countries. The United States ranks as the top country with around 950 companies.

The above map shows the amount of total Retail Tech startup venture capital funding in different countries. The United States has the most VC funding at around $30B.

We are currently tracking 1667 Retail Tech companies in 22 categories across 58 countries, with a total of $54.3B in funding. Click here to learn more about the full Retail Technology startup market report.

The following two graphs summarize the rounds of funding going into the Retail Technology space. Please note these graphics are made using data through September 2017.

The graph above shows the total amount of VC funding broken out by round. From 2009 to 2015, we saw a general increase in the overall sector funding, with the total amount peaking once in 2011 and peaking by more than twice that amount in 2015. Late Stage funding seems to have dominated all the other funding rounds in their funding amounts in 2015. After 2015 the overall sector funding saw a sharp decline.

The graph above shows the total count of funding events broken out by round. From 2006 to 2016 we’ve seen a steep upward trend that peaked in 2015 and then declined sharply in 2016. Earlier stage funding such as Seed, Series A, and Series B events make up the majority of funding event counts.

We are currently tracking 1661 Retail Technology companies in 22 categories across 58 countries, with a total...

The following graph summarizes investor activity in the Retail Technology space. Please note these graphics are made using data through September 2017.

The above analysis summarizes the total number of investment rounds Retail Tech investors participated in, and the number of unique companies funded by selected investors. Major investors into the space include Sequoia Capital, 500 Startups, GV, Accel Partners, and Y Combinator.

We are currently tracking 1658 Retail Technology companies in 22 categories across 58 countries, with a total of $53.8 Billion in funding. Click here to learn more about the full Retail Technology market report.

The following two graphs show exit activity in the Retail Technology sector. The graphics include data through September 2017.

The above graph summarizes the number of exits (acquisitions and IPOs) in each Retail Technology category. The Marketing Platforms category is leading the sector with 32 acquisitions and 1 IPO, followed by the In-Store Experience category with 25 acquisitions and 4 IPOs.

The above graph summarizes the number of exits (acquisitions and IPOs) in the Retail Technology sector by year. 2015 leads the sector with 48 acquisitions and 4 IPOs, followed by 2017 with 47 acquisitions and 3 IPOs.

We are currently tracking 1651 Retail Technology companies in 22 categories across 58 countries, with a total of $53.2 Billion in funding. Click here to learn more about the full Retail Technology market report.

Here is our Q3 2017 summary report on the Retail Technology startup sector. The following report includes a startup landscape overview, graphical trends with insights, and recent funding and exit events.

We are currently tracking 1646 Retail Technology companies in 21 categories across 58 countries, with a total of $53.1 Billion in funding. Click here to learn more about the full Retail Technology market report.

The following graphs highlight venture investing trends into the Retail Technology sector. The graphics include data through September 2017.

The above graph compares the total venture funding in each Retail Tech category to the number of companies in the category. The Last Mile Logistics category leads in funding at around $13B. The Marketing Platforms category leads in the number of startups with about 214.

The above analysis summarizes the average company funding in each Retail Tech category. The Daily Deals category leads the sector with around $119M in average funding per company, followed by the Last Mile Logistics category with around $83M in average funding per company.

We are currently tracking 1640 Retail Tech companies in 22 categories across 58 countries, with a total of $52.8B in funding. Click here to learn more about the full Retail Technology market report.

The following graph shows average and median age in the Retail Technology sector. The graphic includes data through September 2017.

The above graph summarizes the average age and median age of companies in each Retail Technology category. The Daily Deals category ranks as the most mature Retail Technology category with an average age of around 11 years and a median age of 8 years. Made to Measure Customization comes in as the second oldest category, with a average age of around 10 years and a median age of 8 years. On the other hand, Last Mile Logistics is the youngest Retail Technology category with an average age and a median age of around 5 years each.

We are currently tracking 1673 Retail Technology companies in 22 categories across 58 countries, with a total of $51.7 Billion in funding. Click here to learn more about the full Retail Technology market report.

The following graph shows the founding year distribution in the Retail Technology sector. The graphic includes data through April 2017.

The above graph summarizes the number of Retail Technology companies founded in a certain year. 2012 ranks at the top with around 228 companies founded in that year alone. 2011 is the runner-up with 220 companies founded in that year.

We are currently tracking 1663 Retail Technology companies in 22 categories across 58 countries, with a total of $50.7 Billion in funding. Click here to learn more about the full Retail Technology market report.

The following two graphs summarize the rounds of funding going into the Retail Technology space. Please note these graphics are made using data through April 2017.

The graph above shows the total amount of VC funding broken out by round. From 2009 to 2015, we saw a general increase in the overall sector funding, with the total amount peaking once in 2011 and peaking by more than twice that amount in 2015. With the exception of Seed funding, all other rounds of funding saw approximately equal amounts during these years. After 2015 the overall sector funding saw a sharp decline.

The graph above shows the total count of funding events broken out by round. From 2006 to 2014 we’ve seen a steep upward trend that peaked in 2014, dipped slightly in 2015, and then declined sharply in 2016. Earlier stage funding such as Seed, Series A, and Series B events make up the majority of funding event counts.

We are currently tracking 1657 Retail Technology companies in 22 categories...